Shrinking IRS staff means less revenues

Sep. 17, 2013 - 01:50PM
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A shrinking IRS staff is appearing to be having an impact in the form of fewer collections.

The Treasury Inspector General For Tax Administration said in a new report released Tuesday that revenue collected by the IRS fell 9 percent in fiscal 2012 to 50.2 billion  down from $55.2 billion in fiscal 2011. Since 2010, revenue has fallen 13 percent  about the same reduction as the 14 percent drop in enforcement personnel, according to the report.

The IRS is facing many new challenges while operating with fewer resources and employees. Several indicators showed the effect of this, including a decrease in enforcement revenue and a continued increase in accounts receivable, said Russell George, the Treasury Inspector General for Tax Administration.

The IRS has lost 8,000 full-time positions since fiscal 2010. Roughly 5,000 of those were in tax enforcement, according to the report.

The situation may get worse  one third of executives and 20 percent of managers are currently eligible for retirement, according to the report.